Question 1

The opportunity cost of something you decide to get is

Accepted Answer

Opportunity cost is the highest valued alternative that you give up in order to get something. This means that you are giving up the option that you value the most in order to pursue a different option. Option A is incorrect because it refers to the lowest valued alternative, which may not accurately reflect the true cost of the decision. Option C is incorrect because it is too broad and vague in its definition. Option D is incorrect because it only considers the financial cost, not the opportunity cost.

Question 2

When an action is chosen, the highest- valued alternative NOT chosen is called the

Accepted Answer

The highest-valued alternative NOT chosen is the opportunity cost. This is the cost of giving up the next best alternative when making a decision.

Question 3

Because we face scarcity, every choice involves

Accepted Answer

Every choice involves an opportunity cost, which is the value of the next best alternative that must be given up in order to pursue that choice. By considering the opportunity cost, individuals and organizations can make more informed decisions and allocate their resources more efficiently.

Question 4

When the government decides to provide tax relief for small businesses while placing higher taxes on large corporations, it is facing the

Accepted Answer

This decision is related to the "for whom" tradeoff, as the government is making a choice about who will receive tax relief and who will face higher taxes. By choosing to provide tax relief for small businesses, the government is prioritizing the interests of smaller businesses, while placing a higher tax burden on larger corporations. This choice may be based on several factors, such as the government's belief that small businesses are more in need of assistance, or that larger corporations can better afford to pay higher taxes.

Question 5

When a photographer decides to use a digital camera to take shots versus using film, the photographer is facing the

Accepted Answer

The "how" tradeoff refers to the decision of which method or technology to use in production, in this case, choosing between digital and film photography.

Question 6

Opportunity cost means the

Accepted Answer

Opportunity cost refers to the highest-valued alternative foregone when choosing one option over another. It is not simply accounting cost or monetary cost, but the cost of giving up the next-best alternative. Therefore, option B is the correct choice. Choices A, C, and D do not accurately describe opportunity cost.

Question 7

The term used to emphasize that making choices in the face of scarcity involves a cost is

Accepted Answer

Opportunity cost emphasizes that making a choice involves giving up the opportunity to engage in the next best alternative. In other words, the cost of choosing one option is the value of the best alternative forgone. This concept highlights that scarcity forces individuals or societies to make choices, and those choices are associated with costs. Therefore, option A, opportunity cost, is the best answer to the given question. The other options, substitution cost, accounting cost, and utility cost, are not directly related to the concept of scarcity and choice.

Question 8

The opportunity cost of any action is

Accepted Answer

Opportunity cost refers to the highest-valued alternative that is forgone when a certain choice is made. Therefore, the best choice is B, which correctly identifies the opportunity cost as the highest-valued alternative forgone. Choices A, C, and D are incorrect because they either limit the concept of opportunity cost to only monetary cost, consider all possible alternatives instead of the highest-valued one, or mistakenly omit the idea of monetary cost altogether.

Question 9

Which of the following statements are correct?
I. The "highest- valued alternative given up to get something" is the opportunity cost.
II. Wealthy economies don't experience opportunity costs.
III. Scarcity creates opportunity costs.

Accepted Answer

I is correct as opportunity cost is defined as the highest-valued alternative that is forgone to pursue a certain action.
II is incorrect as all economies, regardless of their wealth, face scarcity and thus opportunity costs.
III is correct as scarcity refers to limited resources and unlimited wants, which leads to choices and trade-offs, and ultimately the opportunity cost of choosing one option over another.

Question 10

Which of the following best describe(s) opportunity costs?
I. An opportunity cost is the next best alternative a person has given up when he or she makes a c to do something else.
II. Opportunity costs are always measured in terms of dollars.
III. Opportunity costs are higher for U.S.- made goods.

Accepted Answer

Only statement I accurately describes opportunity costs as the next best alternative given up when making a choice. Statement II is false, as opportunity costs are not always measured in dollars. Statement III is also false, as opportunity costs do not depend on the origin of the goods being compared.

Question 11

Opportunity cost is measured in terms of

Accepted Answer

Opportunity cost is the value of the next best alternative that is given up when a choice is made. It can be measured in terms of both monetary value and time. For example, if you choose to go to college, you are giving up the opportunity to earn money by working full-time. The opportunity cost of going to college is the amount of money you would have earned if you had worked full-time instead.

Question 12

The loss of the highest- valued alternative defines the concept of

Accepted Answer

The definition given in the question matches the definition of opportunity cost, which is the cost of the next best alternative that must be forgone in order to pursue a certain action.

Question 13

The "how" tradeoff occurs when

Accepted Answer

The "how" tradeoff refers to the decision-making process regarding the method of production, such as choosing between using machinery or labor.

Question 14

Opportunity cost is defined as

Accepted Answer

Opportunity cost is the highest-valued alternative that is foregone in order to pursue a certain action. Therefore, the best choice is option B, which accurately describes this concept.

Question 15

Opportunity cost is defined as the

Accepted Answer

Opportunity cost is the highest-valued alternative that is given up when a choice is made. This means that the option that would have yielded the most benefit or value is foregone in favor of another choice.

Question 16

Opportunity cost is best defined as

Accepted Answer

Opportunity cost is the highest-valued alternative that is given up to get something. This means that when making a choice, we must consider not only the benefits of the option we choose but also what we are giving up by not choosing one of the other alternatives. Option D best captures this concept by emphasizing the importance of the highest-valued alternative that is foregone.

Question 17

The ultimate cost of any choice is

Accepted Answer

The ultimate cost of any choice is the highest-valued alternative forgone, also known as opportunity cost. This means that when making a choice, we are not only sacrificing the dollars expended, but also the value of the next best alternative that we are giving up. Therefore, the best choice is the one that has the lowest opportunity cost, meaning the alternative with the highest value that we are sacrificing is the least valuable.

Question 18

The night before a midterm exam, you decide to go to the movies instead of studying for the exam. You score 60 percent on your exam. If you had studied the night before, you'd have scored 70 percent. What was the opportunity cost of your evening at the movies?

Accepted Answer

The opportunity cost of going to the movies instead of studying was a 10 percent decrease in the grade. Therefore, the best choice is C.

Question 19

Opportunity cost is best defined as

Accepted Answer

Opportunity cost is the value of the next best alternative that is given up in making a choice. It is the cost of foregone opportunities, the benefits that could have been obtained from choosing an alternative option. Therefore, the best choice is option A.

Question 20

You have the choice of going on vacation to Florida for one week, staying at work for the week, or spending the week doing fix- up projects around your house. If you decide to go to Florida, the opportunity cost of the trip is

Accepted Answer

The opportunity cost of going to Florida is either the wages you would have earned from working or the cost of materials and time you would have spent on fix-up projects. Therefore, the best choice is to weigh the value of the vacation against the value of either working or doing fix-up projects and choose the option with the least opportunity cost.

Quiz 1: What Is Economics

The opportunity cost of something you decide to get is

When an action is chosen, the highest- valued alternative NOT chosen is called the

Because we face scarcity, every choice involves

When the government decides to provide tax relief for small businesses while placing higher taxes on large corporations, it is facing the

When a photographer decides to use a digital camera to take shots versus using film, the photographer is facing the

Opportunity cost means the

The term used to emphasize that making choices in the face of scarcity involves a cost is

The opportunity cost of any action is

Which of the following statements are correct? I. The "highest- valued alternative given up to get something" is the opportunity cost. II. Wealthy economies don't experience opportunity costs. III. Scarcity creates opportunity costs.

Which of the following best describe(s) opportunity costs? I. An opportunity cost is the next best alternative a person has given up when he or she makes a c to do something else. II. Opportunity costs are always measured in terms of dollars. III. Opportunity costs are higher for U.S.- made goods.

Opportunity cost is measured in terms of

The loss of the highest- valued alternative defines the concept of

The "how" tradeoff occurs when

Opportunity cost is defined as

Opportunity cost is defined as the

Opportunity cost is best defined as

The ultimate cost of any choice is

The night before a midterm exam, you decide to go to the movies instead of studying for the exam. You score 60 percent on your exam. If you had studied the night before, you'd have scored 70 percent. What was the opportunity cost of your evening at the movies?

Opportunity cost is best defined as

You have the choice of going on vacation to Florida for one week, staying at work for the week, or spending the week doing fix- up projects around your house. If you decide to go to Florida, the opportunity cost of the trip is